Q3 FY21 Flash Financials Update – Record Sales Invoices, ARR and TCV increased

Highlights:

•  Decipher for Mining acquisition completed and creates leading commercial off the shelf (COTS) end-to-end tailings management solution in support of GITS (Global Industry Tailings Standard) 
  •  CSBP Ltd (a subsidiary of Wesfarmers Limited) now has a 10% shareholding in K2fly
•  Q3 FY21 record invoices of $2.06M raised (28% increase from March 2020 quarter)
•  ARR (Annual Recurring Revenue) increases 26% from Q2 FY21 ($2.90m)
• TCV (Total Contract Value) increases 56% from Q2 FY21 ($9.13m)
•  Milestone Heritage Agreements signed: o New 3-year Heritage Solution agreement signed for Rio Tinto Iron Ore in February 2021   

                GriffitUniversity Cape York Heritage 5-year agreement signed in March 2021

• • More RCubed deals from North America
  •  Alcoa USA signed new 5-year contract in January 2021
  •  Coeur Mining signed 5-year contract in March 2021
•  Cash available on 31 March 2021 was $1.52M, $1.58M in receivables and no debt

DIsc: I hold

K2fly to acquire Decipher’s mining solutions business

Highlights:

• K2fly to acquire the business assets associated with ‘Decipher for Mining’ (Decipher) from CSBP Limited (CSBP) and Wesfarmers Chemicals, Energy & Fertilisers Limited (WesCEF).

• All scrip consideration comprising 11,366,691 ordinary K2fly shares valued at AUD$3.7 million plus up to 5,345,633 performance shares, both subject to voluntary escrow periods.

• Wesfarmers subsidiary CSBP will become K2fly’s largest shareholder with 10.13% holding. • Decipher provides cloud-based software-as-a-service (SaaS) monitoring and compliance solutions for mining industry customers.

• Decipher CEO Anthony Walker will be joining K2fly in a senior executive position along with the core of the Decipher team.

• Decipher will bring additional depth to K2fly’s growing solution suite in tailings and rehabilitation and extends K2fly's technical assurance and governance footprint inside existing global customers.

DISC:I Hold

Q2 FY21 Quarterly Activities Report (Attached)

Highlights

• SATEVA Acquisition completed and successfully captures increasing share of WA Iron Ore market

• K2fly achieved SAP Endorsed Apps Certification, one of only 11 companies worldwide to achieve this certification

• In Q2 FY21 invoices of $1.56M raised (compared $1.68M in Q2 FY20)

• Negative cash burn for Q2 FY21, includes expenditure to build capability and scale: o K2F significantly increasing expenditure and investment on new product developments including Tailings Solution and Model Manager o Investment in SAP Endorsed Apps Certification o $400K instalment payment for RCubed acquisition, due to achievement of performance milestones o Additional transaction costs from SATEVA acquisition o Payment of deferred government costs ($388k) granted during COVID

• Very positive start to Q3 FY21, 3 new contracts, 10% increase in ARR QTD o >$850k of Purchase Orders already taken for SATEVA o Alcoa USA signed new 5-year contract in January 2020 o FMG extended its Infoscope agreement to overseas operations o New Heritage Solution signed for major WA Iron Ore producer o Total Contract Value (TCV) increased by $1.292M in January

• K2F overall remains cash positive from operations for last 3 quarters (Q4 FY20 to Q2 FY21)

• Cash available on 31 December 2020 was $2.56M, $0.92M in receivables and no debt

Appendix 4C

https://k2fly.com/download/11/asx-updates/1763/appendix-4c-quarterly-cashflow.pdf

Disc:I hold

Alcoa Signs 5-year SaaS Resource Inventory contract with K2F Highlights:

• Alcoa USA Corp has signed a 5-year contract with K2F for its RCubed resource inventory solution across 6 global sites commencing in February 2021.

• Alcoa is a global industry leader in the production of bauxite, alumina, and aluminium with operating mines in Western Australia and Brazil

• (TCV) Total Contract Value* for this transaction is AUD $573,600

See attachment on prev Straw

Disc: I hold

Sateva Acquisition Progress

Highlights:

• Purchase Orders related to SATEVA business >$850k since acquisition completed in November

• Model Manager is now released and being demonstrated to major mining houses globally

• Results from trial of new ore block optimisation solution at major iron ore mine demonstrate significant customer benefit and value that will be applied across the market for bulk miners

• SAP has confirmed the certification of K2fly Solutions (Land Access, Communities and Heritage, Ground Disturbance and Rehab) as “Endorsed Apps”

• K2fly is one of only 12 companies globally to achieve  SAP certification and the first in the Mining Industry Business Unit

This is very good news for K2F

I own shares in the real world & Strawman

Aquisition of SATEVA

Hey Rapstar while also trying to research SATEVA, I found this K2fly's Nic Pollock 'extremely pleased' with acquisition of SATEVA on YouTube follow link  https://www.youtube.com/watch?v=P0Fj9-QyQZo

I hold shares

New to putting up info...hope I've done it the right way